Budget Resolutions and Economic Situation

Alex Sobel Excerpts

Tuesday 21st March 2023 Commons Chamber

[Alex Sobel (Leeds North West) (Lab/Co-op)]

Leeds is a vibrant, rapidly developing city. We are a hub for business, finance, law, technology, and education. Major corporations have their headquarters in Leeds, and we have many universities. However, we still face significant difficulties, not least our outdated transport system, a severe lack of affordable housing and steadily rising poverty rates. Our six levelling-up bids were all rejected by this Government. The Conservative manifesto promised Leeds a mass transit system. We are the largest city in Europe without one. Mayor Brabin and our councils met that challenge and a comprehensive metro tram system has been designed, which will cost £2 billion—that is equivalent to two Northern line extensions. However, five Tory Chancellors have managed to find just £200 million for the scheme; we get the crumbs off the table, although all credit to the Mayor for pressing on with the pittance we have received.

This Budget contains no new comprehensive funding settlement for Leeds, which means that local authorities will be forced to make further cuts or spend their reserves to make up the shortfall. Indeed, the latest report from the Local Government Information Unit found that only 14% of local government officials expressed confidence in the long-term viability of their council’s finances. With no end in sight to the budget cuts, councils will continue to face impossible decisions about which essential services to reduce or eliminate altogether. The cumulative effects of austerity pose a serious threat to communities up and down the country. Rather than investing in the public services so crucial to citizens’ wellbeing, the Government’s austerity agenda rolls on, with no real plan to help cities such as Leeds, and it exacerbates the already very real impacts of the cost of living crisis. The small amount allocated for road improvements and select regeneration projects will do little to alleviate the challenges facing Leeds.

By the Government’s own admission, Leeds has a well-run council, which has been given responsibility for helping to improve other local authorities’ failing children’s services. It has also been steadfast in not cutting frontline adult and children’s services, which are needed now more than ever thanks to a cost of living crisis, exacerbated by Government policies. The council runs on low reserves, forcing all available cash to the frontline services, yet it continues to innovate on climate and infrastructure projects, showing exemplary leadership in that area. The Government, however, push that prudent and forward-looking leadership model to the brink with more and more cuts.

In his Budget, the Chancellor failed to outline any ambition for the co-operative sector, which contributes £40 billion to the economy. Businesses whose customers, employees and members have a genuine stake and say in the performance of the business are well placed to improve the UK economy. We should be supporting that, but growth will not happen by chance, and we have 288 co-ops, employing 5,000 people in West Yorkshire.

I put on record my support for the progress made in devolving powers through the trailblazer deals, which is a positive step. In West Yorkshire, we have seen the positive impact of devolution at first hand. Mayor Tracy Brabin has been doing an exceptional job in getting people back into work, creating and bringing in thousands of good, well-paid jobs to the region. I therefore urge the Chancellor to consider extending trailblazer deals to other areas in the country, particularly in West Yorkshire. That would provide a much-needed boost to the local economy.

Even when the Government do bring new initiatives to Leeds, they cannot leave London behind. We are told by the Government that the new green UK Infrastructure Bank is headquartered in Leeds. In November, I asked the Government how many staff were actually in Leeds, and was told that only 40% of staff are based there. When will the Government ensure that the vast majority of the staff are in Leeds?

Leeds has a population of over 800,000 people and contributes over £60 billion to the national economy. Investing in Leeds is investing in the future of the north of England and the country. When Leeds succeeds, it boosts the economy, creates more opportunities and helps the region to reach its potential. We have the ambition and drive to become an even more prosperous and sustainable city, but we cannot do it alone. We need the Chancellor to step up and fund our city and our region.